WTO Institutions

Group 1

Indara Permataasih (1706019444) Zikra Maharani (1706020074)

Siti Aisyah Sofiah
Nicolette Johnson (1706028751)
Tazkia Reihan (1706021146)
History
● GATT was a post-war development.
● It was negotiated in 1947 and came into force on January 1, 1948. GATT started as a
general agreement for trade concessions among 23 nations.
● GATT was neither an organisation nor a court of justice which could enforce its decisions.
It was simply a multinational treaty, subscribed by nations covering 85% of the world
trade.
● The establishment of WTO started from the GATT, then it negotiated through the Uruguay
Round in 1986 - 1994
● The WTO’s creation on 1 January 1995 marked the biggest reform of international trade
since the end of the Second World War. The birth of the WTO also created new procedures
for the settlement of disputes.
● In 2020, the WTO marked its 25th anniversary.
Objectives & Framework
1. To set and enforce rules for international trade
2. To provide a forum for negotiating and monitoring further trade liberalization
3. To rescue trade dispute
4. To increase the transparency of decision-making process
5. To cooperate with other major international economic institutions involved in global
economic management
Objectives & Framework
6. To help developing countries benefit fully from the global trading system.
7. Based on the principle of pacta sunt servanda
8. Consequence → in conducting the business, the country’s decision must consider their
own interest as well as the WTO’s regulation
Institutional
Aspects of
WTO
Institutional Aspects of WTO
● WTO has 76 founding members that started the organization on January 1, 1995.
● The WTO currently consists of 154 member countries, of which 117 are developing
countries
● Decision making at the WTO is generally carried out based on consensus by all
member countries and carried out by the General Council
● The highest body in the WTO is the Ministerial Conference which is held every two
years
● Underneath are subsidiary bodies which include councils, committees and sub-
committees tasked with implementing and supervise the application of WTO
agreements by member countries
Benefits for Business
1. More Transparent Laws : With the TFA (Trade Facilitation Agreement) in
place, participating countries will be required to publish their trade regulations
and fees online. That means businesses will be able to find all regulations
that will apply to their shipments from a simple search.

1. For developing country, WTO gives them time to catch up with mature
industries as a result of access to developed market at the lower tariff
because of their membership
Benefits for Business
3. Easier and faster customs processing: The agreement will expedite the
customs process by allowing shippers to submit their customs information
and payments in advance of their shipments

3. Creates safing trade arena